Fluid Milk Promotion Act of 1990

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The Fluid Milk Promotion Act of 1990 the designation given to Subtitle H of Title XIX of the Food, Agriculture, Conservation, and Trade Act of 1990 (P.L. 101-624). Subtitle H authorized the establishment of a national fluid milk processor promotion program, or commodity checkoff program for fluid milk promotion. The program is funded through a 20¢/cwt. assessment on all milk processed for fluid consumption.

Food, Agriculture, Conservation, and Trade Act of 1990

The Food, Agriculture, Conservation, and Trade (FACT) Act of 1990 — P.L. 101-624 was a 5-year omnibus farm bill that passed Congress and was signed into law.

In the United States, a commodity checkoff program collects funds through a checkoff mechanism, sometimes called checkoff dollars, from producers of a particular agricultural commodity and uses these funds to promote and do research on that particular commodity. The organizations must promote their commodity in a generic way, without reference to a particular producer. Checkoff programs attempt to improve the market position of the covered commodity by expanding markets, increasing demand, and developing new uses and markets. Checkoff programs amount to $750 million per year.

The Act required the United States Department of Agriculture (USDA) to conduct a referendum among fluid milk processors to determine if a majority favored implementing the program. The Fluid Milk Order was approved by processors and became effective December 10, 1993. The program originally required periodic congressional reauthorization. However, the 2002 farm bill (P.L. 107-171, Sec. 1506) gave the program permanent authority.

United States Department of Agriculture U.S. federal executive department responsible for developing and executing federal government policy on farming, agriculture, forestry, and food

The United States Department of Agriculture (USDA), also known as the Agriculture Department, is the U.S. federal executive department responsible for developing and executing federal laws related to farming, forestry, and food. It aims to meet the needs of farmers and ranchers, promote agricultural trade and production, work to assure food safety, protect natural resources, foster rural communities and end hunger in the United States and internationally.

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The National Fluid Milk Processor Promotion Program was first authorized by the Fluid Milk Promotion Act of 1990. Fluid milk processors through a commodity checkoff program develop and finance generic advertising programs designed to maintain and expand markets and uses for fluid milk products produced in the United States. The mandatory national fluid milk program is financed by a 20¢ per hundredweight assessment on all fluid milk processed and marketed commercially in consumer-type packages. Fluid Milk Board annual revenue is approximately $110 million.

Marketing orders and agreements in United States agricultural policy allow producers to promote orderly marketing through collectively influencing the supply, demand, or price of a particular commodity. Research and promotion can be financed with pooled funds.

References

PD-icon.svg This article incorporates  public domain material from the Congressional Research Service document "Report for Congress: Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition" by Jasper Womach.

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